Designing an Organization in a Hypothesis Testing Framework
Abstract
This paper deals with problems of quantitative organizational design. We endorse the development of a Normative Decision Theory for the quantitative study of distributed organizations. We suggest that Hypothesis Testing is an appropriate paradigm for this framework. To demonstrate this, we present numerical interests for a team consisting of two decision makers (DMs) which performs binary hypothesis testing and study the effect of different communication protocols; we show that near-optimal performance can be achieved with few communications bits. We summarize some other organizational design problems we have studied and present some tentative conclusions and suggestions for future research.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1989
- Accession Number
- ADA210443
Entities
People
- Jason D. Papastavrou
- Javed Pothiawala
- Michael Athans
Organizations
- Massachusetts Institute of Technology